Opexa Therapeutics has entered into an agreement with Novartis for the further development of its novel stem cell technology. The technology, which has generated preliminary data showing the potential to generate monocyte derived islet cells from peripheral blood mononuclear cells, was in early preclinical development at Opexa.
Under the terms of the agreement, Novartis will acquire the stem cell technology from Opexa and will have full responsibility for funding and carrying out all research, development and commercialization activities. Opexa will receive an upfront cash payment of $3m, plus an additional $1m as a technology transfer fee to be paid over the course of a six month period.
Total payments to Opexa, including the upfront payment, the technology transfer fee and development and commercial milestone payments, could exceed $50m not including royalties. Opexa is also eligible to receive royalty payments from the sale of any products resulting from the use of the technology and retains an option on certain manufacturing rights.
Neil Warma, president and chief executive officer of Opexa, said: “This represents a great opportunity for Opexa. Novartis is one of the premier pharmaceutical companies and the expertise they bring to this program will undoubtedly advance the technology significantly. This agreement will also allow us to firmly focus our attention on our key clinical asset, Tovaxin.”